First of all, my presentation of the current DAX situation in detail in the video, before we go into more detail with the charts:
The Momentum has risen enormously this week and reached a new monthly low with the announcement on Monday that Credit Suisse was taken over by UBS. In the direction of the FED decision on Wednesday, however, prices rose again very dynamically by more than 800 points. But this movement was not sustainable either.
We will now go into more detail on this.
DAX buyers and sellers take turns
A first dynamic slide took the DAX below 14,500 points on Monday, but was immediately used for buying again. The goal was not only the round 15,000 mark, but also the old range edge of 15,250 points by skipping on Tuesday morning. The approach was a topic in the Morning analysis on 03/22/2023 with this chart (review):
This had changed little over the FED meeting – it remained at resistance and on Friday brought prices well below 15,000 points again with new fears about the banking crisis:
The fact that we repeatedly saw strong countermovements at the low points made many market participants positive. Exciting setups were found on the market, especially on strong movements, as seen on Friday morning, as can be seen here as an example:
Please join me again in the Live trading webinar for the DAX opening to the first concrete trading ideas and their implementation from 8.55 a.m.:
With the movement on Friday that is GAP was then also closed on Tuesday and the resistance around 15,250 hardened:
Can the index now move back up from this threshold, or does the current support need further testing?
This is exactly what needs to be clarified on Monday.
Reactions with clear volatility on Wall Street
Wall Street also found no clear direction. The Dow Jones, in particular, repeatedly had rapid changes of direction in its program. In addition to the FED meeting with a rate hike of 0.25 basis points, there were two speeches by US Treasury Secretary Yellen that focused on the banking crisis. Correspondingly quick changes of direction could also be seen here:
I favored the long side in live trading on Friday as the Nasdaq tech index was significantly more positive than the Dow Jones and marked rising lows as the week progressed:
Come too from Monday again from 3.25 p.m for the Livetrading added:
New highs for the year were even achieved in the course of the week:
Overall, the Nasdaq was one of the strongest international indices:
I have also created a video for you with a detailed analysis of the interest rate and banking situation:
My tools and other cornerstones for trading
We like to talk about what is happening in the market in the live trading room. Sign up for the Access to the live trading room here free of charge – the dates are anchored in the teaser image:
On the Twitch channel FIT4FINANZEN you will be presented with further detailed inspiration and opinions. Feel free to watch it for free and over several hours, in which other traders and speakers LIVE comment on the course of trading and other financial data in HD and discuss their approach:
Appointments for the new week
A first look at the quarterly figures of the week can be found here:
In the economic calendar, the ifo index on Monday and consumer prices on Thursday are particularly relevant for Germany. You can find the summary as a table here:
In the US there are also plenty of dates available in this long list here for the first two trading days:
I got these key points from the economic calendar taken from this page. I then update these appointments in the daily morning analyses.
With that, I wish us a lot of success in trading in the new week.
Yours Andreas Bernstein
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